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September 23, 2005

The Chemicals Distribution Industry in the US Includes about 10,000 companies with combined annual revenue of $70 billion

Dublin - Research and Markets (http://www.researchandmarkets.com/reports/c24543) has announced the addition of Chemicals Distributors to their offering.

Brief Excerpt from Industry Overview Chapter:

The chemicals distribution industry in the US includes about 10,000 companies with combined annual revenue of $70 billion. Major companies include Univar, Ashland Distribution, and Brenntag. The industry is fairly fragmented: the largest 50 companies hold only about 40 percent of the market.

COMPETITIVE LANDSCAPE

Chemical distribution is a cyclical business dependent on industrial demand. The profitability of individual companies depends on an efficient distribution system. Larger companies can offer more products and services. Local and regional distributors can compete effectively through superior service. The industry is highly automated; annual industry revenue per employee is about $800,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are plastics materials, alkalis and chlorine, detergents and soaps, adhesives, and industrial gases. Plastics account for almost 25 percent of industry revenue.

In addition to selling and transporting chemicals, distributors offer other services including blending, packaging, technical training, and managing customer inventories. Waste removal is a particularly common service to offer. Many suppliers specialize in certain types of chemicals.

Products are bought from manufacturers of industrial chemicals, including petroleum refiners. Multiple suppliers exist for almost all chemical products. A large distributor typically buys from several dozen chemical manufacturers, such as DuPont, Dow, and BASF. Distributors may have long-term distribution agreements with suppliers that specify quantities and price formulas. Such agreements typically renew automatically each year.

Large wholesalers have multiple facilities around the country. Brenntag has over 100 locations, Univar has about 85, and Ashland Distribution has 70.


Content is as follows:
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Trends and Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Website and Media Links
- Glossary of Acronyms


For more information visit http://www.researchandmarkets.com/reports/c24543

Laura Wood
Senior Manager
Research and Markets
Fax: +353 1 4100 980

Posted by Industrial-Manufacturing at September 23, 2005 05:40 AM

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